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You manage a risky portfolio with an expected rate of return of 11% and a standard deviation of 37%. The T-bill rate is 4%.
You manage a risky portfolio with an expected rate of return of 11% and a standard deviation of 37%. The T-bill rate is 4%. Stock A Stock B Stock C 29% 35% 36% Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 10%. Required: a. What is the proportion y? b. What are your client's investment proportions in your three stocks and the T-bill fund? c. What is the standard deviation of the rate of return on your client's portfolio? Complete this question by entering your answers in the tabs below. Required A Required B Required C What are your client's investment proportions in your three stocks and the T-bill fund? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Investment Proportions T-Bills % Stock A % Stock B % Stock C % < Required A Required C >
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